Cryptocurrency Q&A
What if I don't know the cost basis of my cryptocurrency?
What if I don't know the cost basis of my cryptocurrency?
Valentino
Thu Aug 29 2024
|
1 answers
116
Hello there, I'm curious about a potential issue that many cryptocurrency investors may face. What if, for some reason, I'm not entirely sure what the cost basis of my cryptocurrency holdings is? How does this impact my taxes or overall financial planning? Is there a way to calculate or estimate this cost basis if I don't have the exact records? I understand that knowing the cost basis is crucial for accurate tax reporting, so I'm eager to learn more about how to navigate this potential obstacle.
1 answers
Claudio
Sat Aug 31 2024
This approach is generally not recommended, as it can result in a higher tax burden if you later sell the cryptocurrency for a profit.
Was this helpful?
116
22
